What is a Minor’s Compromise?A Minor's Compromise is when an adult signs on behalf of a child so the child can receive money. The law does not allow the child to sign for him or herself until s/he becomes an adult.

Is the process for an Incompetent Person’s Compromise the same as a Minor’s Compromise?Basically, yes. An Incompetent Person’s Compromise, is when another adult, who is appointed by the Court, signs and receives money on behalf of the incompetent person. (An incompetent person is an adult who is unable to make decisions for him or herself.)

What if the child has a legal guardian of the estate?The guardian, conservator, or the guardian ad litem can petition the Court to transfer the funds using one of these methods:

To an insured account in a financial institution or into a single premium deferred annuity, subject to withdrawal only on court order;

To a custodian under the Uniform Transfers to Minors Act;

To the trustee of a trust that the minor can revoke when the minor turns 18;

To the trustee of a special needs trust for the benefit of the minor as described in Probate Code Section 3604. (This type of special needs trust is only for minors who receive public benefits because of disability and high medical expense. When the beneficiary dies, the trust must reimburse the state for the state’s expenses for the individual's medical costs, up to the full amount left in the trust at the time of the beneficiary’s death.)

If there is no guardianship of the estate, the court that makes the order for settlement of the child's claim can make an order to do any of the following:

Establish a guardianship of the estate and transfer the funds to a guardian;

Transfer the funds to the county treasurer for deposit under specified conditions;

Deposit of the funds into an insured account in a financial institution, subject to withdrawal only on ourt order;

Purchase of a single-premium deferred annuity, subject to withdrawal only on court order;

Transfer to a custodian under the California Uniform Transfers to Minor Act;

Transfer to the trustee of a trust that the minor can revoke when the minor attains age 18.

If the settlement is $20,000 or less, the court will make whatever order is in the best interests of the child. If the settlement is $5,000 or less, the court will order a transfer of funds to the parent of the child, in trust for the child.